North Carolina Down Payment Support Systems

Online Merchant account - The North Carolina Housing Finance Agency has two great plans for First Time Home Buyers. These systems are the deposit Assistance Program and the Mortgage Credit Certificate.

If you qualify for one of these programs and you purchase a house between December 1, 2009 and January 1, 2009, you might also be eligible for the $8,000 tax credit only enacted into law.

First, who is a First Time Home Buyer? A first-time Home Buyer is someone who hasn't owned a home within the past three years. It is precisely the same qualifying definition.

A Mortgage Credit Certificate (MCC) is a federal tax credit to assist home buyers with low and average incomes. All home owners can claim an itemized deduction. The MCC takes this a step further. An MCC “reduces your tax liability depending on a percentage of the mortgage interest that you pay.

It is possible to claim 20% of the interest you pay on your own mortgage as a credit on your federal income taxes, in case you are eligible for the MCC. You are able to save up to .

You may find a way to unite this with the $8,000 tax credit if you do qualify for 2009. This may reduce the tax liability of a buyer's by $10,000.

Who Qualifies for an MCC?

Household income is defined as the “gross income of the mortgagor and any other person expected to live in the residence who is 18 years of age or older.”

House price limits that apply in Durham, Orange and Chatham Counties and the income are listed below.

MCC Income Limitations 1 Person $61,500 2 Persons $61,500 3 Persons $70,500 4 Individuals $70,500

MCC Sales Cost Limitations New Home $220,000 Existing Home $210,000

Home buyers that need help with their down payment and closing costs might be able to get down payment assistance - or, to put it differently, interest-free, deferred second mortgages up to $8,000. The customer only has to pay and the load would pay as much as .

This plan has stricter income limits than the MCC plan summarized above. Like the MCC program, it may be used together with all the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The down payment help, nonetheless, cannot be applied together with all the MCC. This really is an either or situation.

House price limitations that apply in Durham, Orange and Chatham Counties and the income are listed below.

Down Payment Assistance Income Limits

1 Person $39,950 2 Men $45,650 3 Individuals $51,350 4 Men $57,050

Down Payment Support Sales Cost Limits New Dwelling $210,000 Existing Residence $210,000